(WZZM) - A new study by the Home Builders Association of Michigan shows local confidence and optimism is way up for buying and and selling, and now more new homes are planned to be built in 2013 than in the past five years.
"The way the books are looking at the store, things are picking up." Tom Schneider can work seven days a week with the work load he's had lately at Rockford Floor Covering Inc. "We did three times the amount of new houses this year than we did in the previous four or five years, so we're happy."
The business is making up for lost time; he didn't work nearly this much during the recession, and not many new homes were built. That's now hurting the quality of homes available to buyers now.
"There's not a great amount of existing homes in place, and so people are looking at building new homes, or buying new homes," explained Vice President of the Home Builders Association of Michigan Rich Kogelshatz. He also is in charge of Heartland Builders LLC. He says demand for new homes will be up in the next year, according to a study by the HBAM. "We've started to a see an increase in consumer confidence where people are feeling like, 'hey, I can sell my house', and I feel like I'm ready to move into a new, or newly built house."
Based on the amount of people expressing interest in new homes, the survey predicts 14,000 new houses will be built this year in the state; a 39% increase over last year. "It's not just localized in Grand Rapids, or on the east side of the state, which was hurting a lot worse that we were, but across the board, the state is seeing building permits go up," continued Kogelshatz.
A promising start to 2013 for Tom. "Things are looking good," and no matter how many hours he has to put in, you won't hear him complain.
Interest in buying also comes while the average rates of fixed mortgages are slipping back down to where they were before the recession, which means we should start seeing sale prices starting to steadily climb back up.